A record number of renters are renewing their leases to avoid a crazy house hunt

Jimmy
McMillan, candidate for Rent is 2 Damn High party, at the 2010
New York State Gubernatorial debate held at Hoftstra University
in Hempstead, New York.Kathy
Kmonicek/AP

A record number of renters in the US are choosing to renew their
leases, according to RealPage.

That's because it's getting harder for them to find
available and affordable apartments that they
would want if they choose to move.

RealPage provides
property-management software for rental housing. Its analysis of
10 million units this year found that the renewal rate was
53.8%, inching up slightly from 52.9% in 2015 and 51.7% in 2014.

"People are renting what they can afford and that means they
might have to make some compromises on neighborhood or product
quality, but they are not spending a much bigger share of income
on rent than they historically have," Greg Willett, RealPage
chief economist, told Business Insider.

The top five markets with the highest retention rates from
January to July were northern New Jersey, Milwaukee,
Cleveland, New York, and Philadelphia.

"Until we reach the point where people start doubling up, or are
just seeking out other housing options, that would suggest that
rents are pricing to go higher," Willett said.

The same imbalance of demand and supply that's
reducing affordability for homeowners is hitting renters as
well. According to the Census Bureau, the rental-vacancy
rate in the second quarter was 6.7%, matching the lowest level
since the fourth quarter of 1985.

Shelter costs have recently been the
biggest driver of inflation measured by the consumer
price index (CPI). Owners' equivalent rent — the value
of shelter for homeowners derived by comparing it to rentals
— is the largest subcomponent of the shelter index. And
it makes up 32% of the overall consumer-price basket that
CPI is based on.